Saudi Arabia said on Wednesday that it would honor a pledge of $3.75 billion in aid to Egypt, after complaints by the Egyptian premier that donor countries were failing to respect their commitments.

"The kingdom pledged to support Egypt in meeting the challenges facing its economy through a series of financial commitments totaling $3.75 billion," Prince Saud al-Faisal was quoted as saying by the official SPA news agency.

The Egyptian judges trying dozens of democracy activists, including Americans, in a case that has strained ties with Washington recused themselves from the trial Tuesday, judicial sources said.

In such instances, the trial, which opened on Sunday, is normally referred to the court of appeals, which appoints a new panel of judges.

Egypt's newly elected senate chose an Islamist as its speaker on Tuesday, extending the religious conservatives' power over the legislature tasked with appointing a panel to draft a new constitution.

Ahmed Fahmy of the dominant Islamist Freedom and Justice Party (FJP) was chosen to lead the 270-seat senate after Islamists won most of the 180 elected seats in the chamber. The ruling military will appoint the remaining senators.

Israeli forces engaged in a firefight overnight with gunmen who infiltrated from Egypt's Sinai peninsula, killing one, the Israeli military said on Tuesday.

"Soldiers patrolling along the Israel-Egypt border identified a number of suspects who had infiltrated into Israel," the military said in a statement.

Israel's new ambassador to Egypt, Yaakov Amitai, presented on Monday his credentials to Egypt's ruling Field Marshal Hussein Tantawi, Israel's foreign ministry said.

According to a statement, Amitai and Tantawi "exchanged words through which they emphasized the importance of the peace agreement and cooperation to both countries."

The Egypt trial of dozens of democracy activists including Americans on charges of receiving illegal funding began in a packed courtroom on Sunday, despite Washington's insistence that the charges be dropped.

A prosecutor in the court in a Cairo suburb read out the charges against the defendants, saying their acceptance of illicit foreign funds had "detracted from the sovereignty of the Egyptian state."

Egypt on Wednesday wraps up two-stage elections for the upper house of parliament, which caps a landmark legislative poll that saw Islamists propelled to the center stage of politics.

Many polling stations were empty in the final day of voting for members of the Shura Council, in sharp contrast to the long queues and active campaigning that marked the People's Assembly vote.

Chinese automaker Geely said Wednesday it will begin assembling cars in Egypt this year with a local partner, marking its latest push overseas as domestic demand hits the brakes.

Geely Holding Group, which owns Swedish nameplate Volvo, will work with GB Auto to assemble passenger vehicles for distribution across North Africa, the Chinese company said in a statement.

The party belonging to the powerful Muslim Brotherhood on Tuesday slammed the "failure" of the military-appointed government, and renewed its call for a national consensus cabinet.

"Egypt still suffers increasing economic and security crises which confirms the failure of the current government," the Freedom and Justice Party said in a statement.

Egypt says it is working "diligently" to resolve a bitter row with Washington over alleged illicit funding of NGOs for which American and other activists are due to stand trial, U.S. Senator John McCain said on Monday.

Egypt's military ruler Field Marshal Hussein "Tantawi has assured us they are working very diligently to resolve the NGO issue," he told a news conference in Cairo during a visit aimed at defusing the row between the traditional allies.